Nabil Bank partners with Exim Bank of India

Kathmandu, Dec. 4

Nabil Bank becomes the first and the only Nepali bank to be onboarded with Export Import (Exim) Bank of India to issue bank agreement under Trade Assistance Programme (TAP).

"After rigorous risk review, India Exim Bank has approved the facility to Nabil Bank under the TAP," Nabil Bank said in a statement on Sunday.

According to the bank, this partnership with Nabil Bank opens up opportunities to facilitate incremental trade between Nepal and India and strengthen the growing economic engagement between the two countries.

Under the arrangement, the Exim Bank shall issue payment guarantee to the Letter of Credit (LC) accepting bank in India in support of payment obligation of Nabil Bank, thereby enhancing the capacity of commercial banks/financial institutions in India to support cross-border trade transactions involving markets like Nepal where trade lines are constrained.

"Exim Bank believes that Nabil partnership with it under TAP becomes another milestone towards globalisation of Nepali banking sector," read the statement.

India Exim Bank is the principal financial institution for coordinating the working of institutions engaged in financing exports and imports fully owned by the Government of India.  It has over the years, played a catalytic role in facilitating India’s integration with the global economy by promoting, financing and facilitating India’s international trade and investment.

Nabil Bank operates through a network of 233 branch offices, 269 ATMs, numerous POS terminals, remittance agents spread across the nation and over 200 international correspondent banking relationships.

Published in The Rising Nepal daily on 5 December 2022.